March 13, 1998

    An International Franchise Association Educational Foundation survey
released in Las Vegas March 10 has found that more than nine of 10
(92 percent) franchise owners surveyed said they were either very or somewhat
successful.  Of those who had been in business 11 years or more, 96 percent
indicated they were very or somewhat successful.
    In the survey conducted for the foundation, the Gallup Organization
surveyed 1,001 U.S franchisees, nearly eight out of 10 of whom own only one
franchised small business.  Women accounted for 28 percent.  Nearly half
(45 percent) of those who responded had a professional or managerial position
before purchasing a franchise, while nearly two of 10 were involved in either
services/labor or retail sales.  Only one of 10 said they were self-employed.
    The survey sample was drawn from 4,000 randomly selected names found in
franchise company data (Uniform Franchise Offering Circulars) on file in
states which require registration.  At a 95 percent level of confidence, the
maximum expected error range is plus or minus 3.1 percent.
    "Franchising is catching on in corners of the world where free enterprise
was never dreamed of just a few years ago," newly elected International
Franchise Association (IFA) Chairman and Uniglobe Travel International Inc.
Chairman and CEO U. Gary Charlwood told hundreds of franchisors, franchisees
and suppliers gathered here for the organization's 38th annual meeting.  "As
technology expands and more nations embrace the concept of franchising, the
potential for growth is enormous."
    A majority of franchise owners are satisfied with their livelihoods.
Eighty-three percent responded that they were either more satisfied or had the
same level of satisfaction compared to involvement in other jobs or
businesses.  Men were slightly happier than women -- 83 percent to 81 percent.
    Due to the high satisfaction ratings, it is not surprising that nearly
two-thirds (65 percent) of the franchise owners said they would purchase the
same franchise again if given the opportunity.  Of those who wouldn't buy the
same franchise again, nearly half (43 percent) said they would consider buying
a different one.
    Nearly all -- 93 percent -- believe being associated with a franchise
system gives them an advantage.  The most important advantages, in order, were
name recognition, support from their franchisor, knowledge, advertising,
buying power, networking and training.  Overall, nearly three-fourths
(72 percent) said their expectations regarding their franchisor were right on
the money.
    Franchise owners believe they are more successful than similar independent
or small businesses, the owners believe.  Nearly two-thirds (64 percent) said
they would be less successful if they had tried to open the same type of
business on their own and not as part of a franchise system.
    On average, franchise owners reported annual gross incomes of $91,630.
Nearly one of four (24 percent) earned $100,000 or more during the past year.
    Longevity and size have an impact on the bottom line.  The longer
franchisees are in business and the more units they own, the higher their
earnings.  Those operating for 11 years or more noted before-tax incomes
higher than $134,000, nearly double the earnings of those in business five
years or less.  Multi-unit franchisees said they earned, on average, more than
$142,000, while single-unit owners' incomes averaged more than $76,000.
    More than one in 10 (12 percent) of women franchise owners reported gross
annual incomes between $100,000 and $200,000, while more than one-fourth
(28 percent) earned between $50,000 and $100,000.  The average income for
female franchisees was $68,140.
    Earnings in the $100,000 to $200,000 range were reported by 18 percent of
male owners, while slightly over one-fourth (26 percent) pegged yearly figures
at between $50,000 and $100,000.  Average gross income for men franchisees was
$100,250.
    Running the day-to-day operations is important to franchisees.  Eight of
10 said they were actively involved in their businesses and six of 10 said
they had worked more hours as a franchise owner than they did in other jobs
they held or businesses they owned.
    An overwhelming majority, nearly nine of 10 (88 percent) said they would
recommend purchasing a franchise to someone rather than opening a non-
franchise business of their own.